Managing Vendors in Your Small Business

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Some small businesses feel they aren’t important enough to establish strong supplier relationships. That thinking is misguided.

All companies experience risk, but small business may be more vulnerable due to a perceived lack of leverage and potential financial impact. One of the goals of vendor management is to gain the commitment of your vendors to assist and support the operations of your business.

Any business can establish strong and vibrant supplier relationships regardless of size. Create clear pathways for supplier communication and opportunities to work together.

Risk is an inherent part of being in business.  It can be managed and its adverse outcomes can be mitigated.  The greatest challenge for small business owners is to find the proper balance between peace of mind and profitability.

Your third-parties need to be monitored. A vendor management solution continuously manages your vendors to ensure billing is correct, contracts are negotiated and adhered to, agreements are renewed timely and properly and documents are stored in a repository easily accessible to management.

Many small businesses rely on third parties to provide services that their internal staff can’t handle, such as utilities, telecom, IT and security. However, these third parties introduce an element of unknown to the company.

Statistics say that on estimate, 60%-80% of business spend on vendors. When you have an understanding of where all your expenses are going, that’s crucial to identify where costs can be lowered.

Essentially, third-party vendor management alleviates the stress of having to perform billing audits, contract negotiations, contract renewals, management of agreements and contact of multiple different vendors.

LIMITLESS offers a fully managed solution to ensure you are “paying for what you are receiving”. Ensuring contract terms are met as well as compliance standards. Tracking any potential risks, optimizing your billing and managing all contract and agreements in one central software solution.

Outsourcing vendor management to a third party will also help standardize processes; and consistency helps enable the transparency essential to effective governance. This helps to alleviate flawed data, and costly mistakes.

Our software will not only house every contract, service agreement, warranty or renewal agreement, but we also manage negotiations for better rates and terms saving your business from unnecessary fees and costs while maintaining quality standards. If you have questions regarding how to manage vendor contracts/agreements or would like more information regarding our fully managed vendor management solution contact LIMITLESS at (866) 504-4050 or email us at info@limitlesstechnology.com.